Question

draw the graph & label the points where they belong

WIR With Graphing Questions - Clapter 7 Clear All 2 The graph below depicts the production possibilities frontier (PPFO) for a particular country. The country is currently operating at point Using the appropriate tool, Illustrate short-run growth to a full employment level in this economy. Label any additions to the graph accordingly. Coordinates: (57.75, 92.00) Good A POFO ITIL Point B Unselected Good B Clear All 2 6. Which of the following would promote long-run economic growth? converting idle land into farm land technological advancement Start: 2:00 PM MacBook Air

Answer 1

A» Good-B In short run at full employment level.

Option B is correct. Technical advancement leads to a shift in the PPF curve and it leads to long-run economic growth. For growth in an economy, they need to implement those policies which affects them to work out of their existing potential.

Converting idle land into farm land would promote potential growth. At point A, resources are underutilized. The point A will come on the PPF curve only when resources are fully utilized in the economy. There is no further growth in the economy thereafter.